In a significant shift for the UK retail landscape, American investment titan Carlyle has seized ownership of The Very Group, one of Britain's largest online retailers. The move formally ends the Barclay family's control of the business, which began in 2002.
A New Chapter for The Very Group
The Nasdaq-listed investment firm is set to announce the acquisition on Monday, following a board meeting held by Very Group's directors on Sunday to ratify the change. Carlyle injected several hundred million pounds into the company's capital structure, paving the way for it to become the controlling shareholder.
This transaction concludes more than two decades of involvement from the Barclay family, who originally purchased the business for £750 million when it was known as Littlewoods. The Very Group, which also operates the Littlewoods brand, now boasts annual revenues exceeding £2 billion and serves 4.4 million customers.
Financial Stability and Future Growth
Industry sources indicate that this change of control will provide The Very Group with a stronger capital base and greater financial flexibility. This is seen as a crucial step to support a concerted effort for future growth.
The company, chaired by former Conservative chancellor Nadhim Zahawi, employs thousands and sells a wide range of general merchandise, including electrical goods, homewares, fashion, and toys. It also operates a major consumer finance arm to help shoppers manage payments.
In its latest full-year results, group chief executive Robbie Feather announced a 16% increase in adjusted earnings (EBITDA) to £307 million. The deal comes after the company borrowed a further £600 million from the Mayfair-based fund Arini earlier this year to alleviate cash flow pressures.
The Unravelling of a Business Empire
The handover to Carlyle marks another step in the unravelling of the Barclay family's corporate assets. The family has already lost control of other major holdings, including the Yodel parcel delivery service and the Telegraph newspapers.
While the Barclay family had drawn up plans to hire bankers for an auction of Very Group earlier this year, a formal sale process was never launched. Retail insiders had long speculated the business could be valued at around £2.5 billion, a figure below what the family had previously sought.
IMI, the Abu Dhabi-based media group, will remain a lender to The Very Group. Carlyle, which declined to comment on the deal, is expected to hold onto the business for a significant period before considering a future sale.
